The last week’s crypto market rout saw Cardano paring a big portion of the losses that were incurred throughout. The price of ADA went on to reach an intraday high of $0.60 on the 13th of May, a day after it rebounded from its week-to-date low of $0.38- which was a rally of 58%. This huge retracement on the up did appear in the wake of pretty similar price action in the crypto market with most of the top cryptos Ether and Bitcoin rebounding by around 23% and 25.75% since the lows of yesterday.
Cardano Could Stay Adrift In The Current Crypto Market
Yet, this sharp recovery by Cardano does not really promise an extended upward continuation, at least according to quite a few factors that need to be discussed. One of the price actions taken by ADA and similar assets of crypto has been to put in lockstep with the US equities- especially tech stocks. One needs to note that the correlation coefficient between Nasdaq Composite and ADA was 0.93 on the 13th of May, which means that any of the major moves in stocks would definitely steer ADA in a similar direction.
The chances of the composite ever going through a sharp recovery are quite slim, as most analysts did highlight the overstretched valuations of the stocks of the Big Tech and their chances of going further in an environment with a higher interest rate. Richard Waters, the West Coast editor of the Financial Times, added that the ax was hanging pretty low over the high-growth tech companies.
To put it simply, the persistent positive correlation that Cardano shares with Nasdaq could definitely result in a far more sharp decline in the ADA market, at least for the time being.